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snow_tiger [21]
4 years ago
7

Diego's company was bidding on the construction of a new penguin display at a zoo. When putting together his bid, Diego began by

determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. The result would be the cost of production. For example: If price to zoo = $8 million, and company profit margin = $3 million, the cost to produce cannot exceed $5 million. [$8 million – $3 million = $5 million.] The demand-based pricing strategy in this example is called:
Business
1 answer:
lisov135 [29]4 years ago
6 0

Answer:

Target costing

Explanation:

Target costing is a demand-based pricing strategy in which the budget is determined based on a target cost that is stablished according to the customer's willingness to pay. The cost of production added to the desired profit margin should not surpass the customer's willingness to pay in order for this method to be applied.

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Which of the following best represents the misallocation of resources that would occur under a price ceiling on bottled water fo
solong [7]

Answer:

A family in a distant state gives bottled water to its dog, but a family in the hurricane area cannot find bottled water to drink.

Explanation: Hurricane is a natural phenomenon which occurs as a result of violent storms developing and accumulating in a given area, Hurricane can be very devastating destroying lives and properties. the most misallocation of resource considering the options is when a dog in A family in a distant state gives takes bottled water, but a family in the hurricane area cannot find bottled water to drink.

3 0
3 years ago
Excise taxes on gasoline and state sales taxes are often criticized for being regressive, even though everyone pays the same tax
romanna [79]

Answer:

Yes because a person with a lower income may tend to spend a greater share of his income on gasoline

Explanation:

For example, if a low income individual earning $1000 and a high-income person who earns $2000 each purchase 12 gallons of gasoline, the taxes on this purchase will consume a larger portion of the low-income person’s earnings than that of the high-income person. Assuming a tax rate of 5% of earnings multiplied by 12 Gallons.

Low income individual earnings after tax deductions= $400

High income individual earnings after tax deductions= $800

3 0
3 years ago
A production department's output for the most recent month consisted of 12,500 units completed and transferred to the next stage
umka21 [38]

Answer:

20,625 units

Explanation:

Calculation for the equivalent units of production

Using this formula

Equivalent units of production=Units completed+Ending work in process inventory

Let plug in the formula

Equivalent units of production=12,500+(12,500×65%)

Equivalent units of production=12,500+8,125

Equivalent units of production=20,625 units

​

Therefore the equivalent units of production for the month is 20,625 units.

6 0
3 years ago
Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $850 2 1,100 3 1,300 4 1,150 Re
Gwar [14]

Answer:

The present value at the discount rate of 10% is $3,443.99  ,$2,955.44 at 17% and $ 2,428.00   at 27%

Explanation:

The present were arrived at by discounting each year's cash flow to present value by applying discounting  factor given  as 1/(1+r)^n where r is the discounting rate and n is the number of applicable time horizon.

Kindly find attached spreadsheet showing full computations of the present values

Download xlsx
8 0
3 years ago
Companies. John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabi
noname [10]

Answer: The profits would be shared equally

Explanation: This is because

Since there was no agreement stating how profits would be divided,then the applicable state Limited Liability Company statute will rule. Most LLC statutes states that if members do not specify how profits are to be divided, they will be divided equally. As long as no operating agreement or LLC statute addressed the particular issue, the partnership law applys which also indicates that profits should be divided equally among the owners of a firm unless it was specified otherwise.

3 0
3 years ago
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